6 Ways to Pay for Emergency Home Repairs

What are 6 Ways to Cover Emergency Home Repairs?

It’s likely that you’ve already budgeted for routine home maintenance and improvements as a homeowner. But what if an unexpected home repair comes up? Your current budget might not be enough to cover an unexpected expense. If you have reliable homeowners insurance, you should be able to pay for your repairs. But, if you don’t have insurance and need money fast, you could consider some other options to help you take care of your business.

Take a look at 6 ways to pay for emergency home repairs right now:

Apply for a HELOC

A home equity line of credit (HELOC), is a line of credit secured by your home that gives you access to a revolving credit line to use for significant expenses or to consolidate debt. With a HELOC, you borrow against your available home equity and use your house as collateral for the line of credit. As you repay your outstanding balance, the amount of available credit will deplete. That means you can borrow against your credit again whenever you want, and you can borrow as much or as little as you need up to the credit limit you establish at closing. 

Keep in mind that your interest rate can change from month to month, depending on your available home equity line of credit. Contact a lender for further information before you consider a HELOC.

Obtain a Home Equity Loan

Like a HELOC, a home equity loan allows you to borrow money against your home’s value. The only difference is that you don’t take money from a credit line; instead, you receive a lump sum and a regular repayment schedule. Since a HELOC is a type of home equity loan, you would need much of the same information you would use to apply for a HELOC.

In some cases, financial institutions won’t lend you money under $25,000 if you apply for a home equity loan. So if your home repair is less than that amount, you might have trouble finding a loan that can give you a small sum. Additionally, you’ll need to ensure that you can afford to repay what you borrowed. Since home equity loans use your house as collateral, you could risk losing your home if you don’t repay your loan. 

Consider Using Your Credit Card

Taking out a credit card might make sense if you only need money for a minor home repair. However, be aware that credit cards can have high interest rates unless you’re in an introductory period with a low APR. If you use a credit card, you’ll need to create a plan to quickly pay your balance to avoid ending up with plenty of interest payments. You should only consider using a credit card if you want to cover your repairs immediately without waiting for a loan.

Ask Friends and Family for Help

Sometimes, the best option is to rely on your friends and family for help. If your loved ones are willing to assist, you could talk to them about your situation. You may receive money as a gift, or your friends/family members could ask others for funding. It’s never a bad idea to receive support from those you trust.

However, you should set an expectation in mind. You might not obtain all the necessary funds for your repair, but it could be a start. Use that money to help pay a part of your expense while you find other means to retrieve cash.

Apply for Government Assistance

Depending on your circumstances, you may be able to receive assistance from the government. For example, if a hurricane or flooding affected your property, you could request help from the Federal Emergency Management Administration (FEMA). Through FEMA, you can apply for a grant to pay for costs your insurance can’t cover. Apply for federal aid through FEMA’s website to see if you qualify.

You can also apply for Title 1 Property Improvement Loans if you don’t have a lot of equity in your home. These loans are suitable for repairs up to $25,000 for single-family homes, and up to $60,000 if it’s a multi-unit home. It is just a matter of making sure that you meet the eligibility requirements.

Take Out a Title Loan

To initially qualify for a title loan, you will need a vehicle title in your name and be able to provide proof of income. If you’re eligible, you could receive money in no time, even if you have bad credit! You can easily retrieve the funds you need for emergency home repairs if you meet the right criteria. Talk to 800LoanMart if you have questions about online car title loans. 

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